Disclaimer: I am not asking for help; I am sharing my experiences
Performed the procedure in http://wiki.laptop.org/go/User:Holt/XS_Community_Edition/0.3/Installing on an "unsupported" system configuration - I did not have an AP connected - my internet connection (eth1) was wired internet. I needed to pay attention to advice I saw someplace on that website: "If a command fails, just repeat it".
The problem in my situation was with the action of the xs-setup-network command (called internally from within xs-setup). When the Network Manager was stopped and restarted by xs-setup-network, it totally deleted my wired ethernet connection, with the result that subsequent yum package installs (including that of ejabberd) all failed for lack of a connection. After reestablishing the wired connection, I brute-force overcame this fault by commenting out the xs-setup-network call within xs-setup - then xs-setup was able to run to completion.
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